Our All-Stars Basket Crosses into the Black
In Friday’s Weekly Roundup, we discussed the rebound underway in the Portfolio’s current EPS All-Stars basket. So far, that momentum is continuing with further gains in the shares of Bloom Energy ($BE), Micron ($MU), SiTime ($SITM) and Seagate Technology ($STX). These additional gains pushed the basket into the black quarter-to-date (QTD) but despite that progress, the QTD performance of about 2% is still a wee bit behind the S&P 500’s QTD return of about 3.65%.
Development on the AI and data center buildout and other factors keep us bullish on this current lineup of companies with the fastest level of EPS growth when viewed through a multi-year lens. Current consensus price targets for the eight basket residents suggest there is more to come:
Bloom Energy: $290
Ciena ($CIEN): $603.50
Eldorado Gold ($EGO): $43.25
Lumentum ($LITE): $1,141
Micron: $1,550
SiTime: $850
Seagate Technology: $1,090
No doubt the above will stoke at least a few comments and questions over whether folks should add to their All-Stars basket at current levels or if those who missed out back on July 1 should begin an All-Stars position now.
If you’ve been following the EPS All-Stars strategy, or have read about it in an alert or one of the Monthly Roundups, our answer will not startle you: The Portfolio’s strategy for the basket is to enter it at the start of the quarter and hold the basket until the next reconstitution period that begins on the final day of trading for the current quarter.
The aim is to let the multi-year EPS focused strategy play out over the course of the entire quarter and let the one-two combination of EPS growth and multiple expansion delivery performance.
More Pro Portfolio
- Locking in Gains, Setting New Price Target for This Data Center Play
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- Weekly Roundup: An Electric Week for the Market Was Also a Great One for the Portfolio
At the time of publication, TheStreet Pro Portfolio was long BE, CIEN, EGO, LITE, MU, SITM and STX.
